All charges will be deducted from your SIPP. These charges and rates are effective from 6 April 2015.
Set up and administration
|Setting up your SIPP||Nil|
|Paying a single or regular contribution||Nil|
|Transfer in from another registered pension scheme||Nil|
SIPP custody charge
|Based upon the total value of your SIPP||£10,000 and below||£5 per quarter|
|Above £10,000 to £20,000||£15 per quarter|
|Above £20,000||£25 per quarter|
Buying and selling investments (per deal)
|Deals in previous month||Charge|
|Online (excluding funds)||0 - 9 deals||£9.95|
|10 or more deals||£4.95|
|Where we are required to complete a paper application (e.g. structured products). You will be told in advance if this will apply||£100|
|International dealing - foreign exchange charge||1.00%|
Regular investing (per deal)
|Buying any of the regular investments available||£1.50|
|Custody charge based upon the total value of funds in our funds universe (see the list on our website) and structured products||0.20% per annum (maximum £50 per quarter)|
Benefits, transfers out and other charges
|Charge – VAT is payable except where stated|
|Flexi-access or capped drawdown administration charge covering all regular income payments (see notes)||£100 per annum|
|Flexi-access or capped drawdown administration charge where no regular income is taken (see notes)||£50 per annum|
|One-off income payments under flexi-access or capped drawdown||£25|
|Put additional funds into flexi-access drawdown – per tranche||£75|
|Regular uncrystallised funds pension lump sums (see notes)||£100 per annum|
|One-off payment of an uncrystallised funds pension lump sum||£75|
|Purchase an annuity||£150|
|Review of capped drawdown (excludes triennial/annual reviews; includes reviews when additional funds are moved into drawdown)||£75|
|Closure of your SIPP through taking flexi-access drawdown payments or uncrystallised funds pension lump sums within 12 months of opening your SIPP (see notes)||£295|
|Transfer out to another UK registered pension scheme in cash||£75|
|Transfer out to another UK registered pension scheme in specie||£25 per holding (no VAT) plus £75|
|Transfer out to a QROPS||£250|
|Payment of benefits on death or if your pension is to be split/shared as part of a divorce||Time/cost basis. Minimum charge expected to be £250|
|Payment by CHAPS||£25|
|Disinvestment, if we need to sell some of your holdings to cover charges||£29.95 per holding (no VAT)|
|Dividends on corporate action payments – foreign exchange charge||0.50% (no VAT)|
Interest rates paid on the cash held in your SIPP account
|Cash balance||Gross interest rate for this tier only||Interest rate (AER) for this tier only|
|Above £10,000 to £50,000||0.05%||0.05%|
|£10,000 and below||0.00%||0.00%|
SIPP custody charge
- The charge is payable quarterly, based on the total mid-price value of your SIPP at the end of the calendar quarter and will normally be collected within 20 business days of this date.
- For new accounts opened during the calendar quarter, the SIPP custody charge will be applied on a pro rata basis from the date of account opening to the end of the quarter. For accounts closed in the calendar quarter, the SIPP custody charge will be applied on a pro rata basis from the beginning of the quarter to the date we receive your closing instruction.
Buying and selling investments
- The online dealing charge is determined by the number of deals you placed in the previous calendar month across the accounts in your individual name (excluding any regular investment deals). For example, the charge you pay in February will depend on the number of deals you made in January. If you make 10 or more online deals a month, then the £4.95 charge will apply the following month.
- The investments that you choose may have their own initial and annual charges, in addition to our dealing charges.
- Dealing charges apply separately to purchases and sales. The dealing charge for each transaction will be shown on the contract note.
- Stamp duty of 0.50% applies on all purchases (not sales) of UK quoted shares (1.00% for shares quoted on the Irish Stock Exchange). Stamp duty is payable on certain securities issued by UK incorporated companies where these securities are traded as CREST Depositary Interests. There is no stamp duty on purchases (or sales) of unit trusts, open ended investment companies (OEICs), exchange traded funds (ETFs), warrants and government stock.
- The PTM (Panel on Takeovers and Mergers) levy of £1.00 is payable on equity trades with a consideration over £10,000 in securities of companies which are incorporated in the UK, Channel Islands or the Isle of Man.
- Additional government and local stock exchange charges are payable for certain international markets. These are detailed on the charges and rates page on our website and will be added to your contract note.
- A foreign exchange charge of 1.00% will be included in the rate used to convert the value of your deal to sterling. We may share a proportion of this with our service provider.
- The fund custody charge is payable quarterly, based on the total mid-price value of funds in our funds universe and structured products at the end of the calendar quarter and will normally be collected within 20 business days of this date.
- For new accounts opened during the calendar quarter, the fund charge will be applied on a pro rata basis from the date of account opening to the end of the quarter. For accounts closed in the calendar quarter, the fund charge will be applied on a pro rata basis from the beginning of the quarter to the date we receive your closing instruction.
- The fund custody charge does not apply to funds outside our funds universe or to exchange traded products, investment trusts or VCTs.
Benefits and transfers out
- The annual charges will be payable when the SIPP is first put into drawdown or the regular uncrystallised funds pension lump sums set up, and on each anniversary thereafter.
- The closure charge will apply where you have reduced the value of your SIPP to £1,000 or less through taking flexi-access drawdown or uncrystallised funds pension lump sums within 12 months of opening your SIPP. We will be entitled to close your account and pay the remaining funds to you, after deducting our charges. The closure charge does not apply to SIPPs opened before 6 April 2015.
Investing in unit trusts and OEICs
- If you are investing in unit trusts and OEICs, we off er discounts on the initial charge made by the fund managers. Any specially negotiated discounts of initial charges on unit trusts and OEICs are passed to you. See our funds universe for details. Information on the annual charge for the unit trust or OEIC may be obtained from our website, or direct from the fund manager.
- On certain funds we may receive a part of the fund manager’s annual management charge each year. The annual amount received varies from one fund to another up to 0.75%.
- Any funds that you transfer to us that are not clean funds, but have a clean fund equivalent, will be converted into that clean fund equivalent. If there is no clean fund equivalent we will hold the fund in its existing form, but will be entitled to convert it in future if a clean fund equivalent is created. We do not charge for conversions.
Interest rates paid on the cash held in your SIPP cash account
- When comparing charges between different SIPP product providers, you should also compare the interest rates payable on your cash, particularly if you intend to hold significant sums of money in cash. The amount of interest paid will depend on the amount you choose to hold in cash and market interest rates.
- The interest rate for each tier only applies to money held in that tier and not to the account balance as a whole. Total interest paid will be a blended rate depending on the money held in each tier. Therefore the interest rates shown should not be used for comparative purposes with other accounts, unless they operate on a similar basis.
- Interest rates are subject to variation and interest is paid to your account quarterly, in arrears. Interest will not be credited or paid if the amount of such interest, at the end of each quarter, is less than £2.50.
- There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
- The Annual Equivalent Rate (AER) represents the annual rate eff ectively received by your account if the interest at gross rate applied during a year remained in the account and itself earned interest.
- Whilst not directly relevant when comparing charges and interest rates, you should be aware that AJ Bell receives payments from banks based on the aggregate cash balances held across all accounts. The amount we receive will vary depending on the total cash balances held and market interest rates. Over the foreseeable future, we expect to receive between 0.25% and 0.50% per annum above the prevailing base rate, although it may be higher or lower when interest rates are volatile. These payments are used to pay interest to your SIPP, at the rates shown on our website, and we retain the amount received above this level to keep our administration, custody and dealing charges low.
- You must always ensure that there is sufficient cash held to cover our charges and any SIPP benefits, or other payments, when they are due for payment.
- VAT is only applicable where indicated.